Chile expat tax guide
South America · how a foreigner who moves to Chile is taxed · 2026 · Mixed
If you move to Chile, you become a tax resident when six consecutive months in one year, or more than six months over two consecutive years. As a resident you are taxed on a mixed basis — Residents are taxed on worldwide income, but a newly arrived foreigner is taxed only on Chilean-source income for the first three years (foreign-source income exempt during that window). The top personal income tax rate is 40%. A foreign pension is treated as: Foreign pension exempt during the first 3-year window; thereafter taxable as worldwide income (up to 40%). Chile also offers the 3-year foreign-income exemption regime, which can sharply change this picture. It has a US tax treaty and has a US totalization agreement. Overall it reads as mixed for an inbound mover. General information, not tax advice — verify with Chile's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Chile expat tax at a glance
| Question | Chile (2026) |
|---|---|
| When you become tax resident | Six consecutive months in one year, or more than six months over two consecutive years |
| Residency day-count trigger | 183 days |
| How residents are taxed | Mixed — Residents are taxed on worldwide income, but a newly arrived foreigner is taxed only on Chilean-source income for the first three years (foreign-source income exempt during that window). |
| Top personal income tax rate | 40% |
| Foreign pension treatment | Foreign pension exempt during the first 3-year window; thereafter taxable as worldwide income (up to 40%) |
| Foreign capital gains / dividends | Foreign gains/dividends exempt for the first 3 years; afterwards taxed as worldwide income up to 40% (with foreign tax credit) |
| Special expat / non-dom / retiree regime | 3-year foreign-income exemption |
| US income tax treaty | Yes |
| US social-security totalization | Yes |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Chile, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Chile
The first thing that matters is tax residency: six consecutive months in one year, or more than six months over two consecutive years. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Chile taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 40% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Foreign pension exempt during the first 3-year window; thereafter taxable as worldwide income (up to 40%). Foreign capital gains and dividends: Foreign gains/dividends exempt for the first 3 years; afterwards taxed as worldwide income up to 40% (with foreign tax credit). These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Chile taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The 3-year foreign-income exemption regime
Foreigners are taxed only on Chilean-source income during their first three years of residence, after which worldwide income is taxed. The exemption can be extended at the tax authority's discretion.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with Chile's tax authority before relying on it.
US citizens and social security in Chile
| Question | Chile |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | Yes |
| Tax basis for residents | Mixed |
| Top personal income tax | 40% |
A US tax treaty with Chile helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. A totalization agreement means you generally pay social-security contributions to only one of the two countries. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Chile
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Chile (this country) | Mixed | 40% | 3-year foreign-income exemption |
| Ireland | Mixed | 40% | Non-dom remittance basis + SARP |
| Indonesia | Mixed | 35% | 4-year territorial concession for skilled expats |
| Bulgaria | Worldwide | 10% | None |
| Romania | Worldwide | 10% | None |
| United Kingdom | Mixed | 45% | 4-year Foreign Income and Gains (FIG) regime |
Frequently asked questions
When do you become a tax resident of Chile?
Six consecutive months in one year, or more than six months over two consecutive years. The headline trigger is 183 days. Once resident, Chile taxes you on income on a basis that depends on your status (see the profile). This is general information for 2026, not tax advice — verify with the official authority.
How does Chile tax a foreign pension?
Foreign pension exempt during the first 3-year window; thereafter taxable as worldwide income (up to 40%). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the 3-year foreign-income exemption regime in Chile?
Foreigners are taxed only on Chilean-source income during their first three years of residence, after which worldwide income is taxed. The exemption can be extended at the tax authority's discretion. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with Chile's tax authority.
Is Chile good for US citizens or retirees?
Chile has a US income tax treaty and has a US social-security totalization agreement. The totalization agreement means you generally pay social-security contributions to only one country. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Chile compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. US-Chile income tax treaty entered into force 19 Dec 2023; effective from 1 Jan 2024. US-Chile totalization agreement effective 1 Dec 2001. Top marginal rate 40%. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Chile's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21